"8 Million Strong and Voting!" Small business is the heart beat of the United States economy. This blog searches for issues and answers to helping small business survive and thrive in California and the United States.

Wednesday, August 25, 2010

See below for a great piece on the stalemate in Washington on the Small Business Jobs bill. I like it because it takes both Republicans and Democrats to task.

Both parties are playing politics with our livelihood and I am fed up with it. To both parties and the President get the Small Business Jobs Bill passed and let small business do what we do best. Create jobs.

To all those on the email tree please forward this to your colleagues and get people to write to their legislators. Senators Boxer and Feinstein support this so it is more important you get your Congressperson on board.

Marcus and Ahmod thank the Senators for their support.

Thank you Tony Wilkenson from the National Association of Government lenders for sending me this article.

As of October 8, California employers must begin distributing an updated version of the workers’ compensation new hire pamphlet to all employees hired on or after that date; post revised workers’ compensation employee posting notices; provide an updated version of the DWC-1/Notice of Potential Eligibility to injured workers and post new Medical Provider Network (MPN) notices if they use an MPN.

The MPN notice regulations developed by the Division of Workers’ Compensation and approved last week by the Office of Administrative Law affect several different California workers’ compensation notices. First, the revised MPN employee notification requirements found in CCR §9767.12 require that “Before MNP coverage is implemented, the complete written MPN employee notification shall also be posted in both English and Spanish in a conspicuous location frequented by employees during the hours of the workday and in close proximity to the workers’ compensation posting required under section9881.”

Because the details on this “complete written MPN employee notification” are MPN-specific, claims administrators are scrambling to make sure these notices are ready for employers to post by the October 8 effective date. In addition, however, the recently adopted regulations require MPN information to be added to the workers’ compensation new hire pamphlets, the general workers’ compensation posting notices, and to the DWC-1/NOPE, so all of these materials are also being revised to reflect the new rules that take effect in less than two months.

Under the California Labor Code and state regulations, insured and self-insured employers are required to inform their employees of their workers’ compensation rights and obligations by posting state-approved notices (LC § 3550) and providing pamphlets to new hires (LC § 3551). The law specifies that insurers shall provide these notices to their policyholders with advice concerning the posting requirements and the penalties for failure to post and supply the information to employees [LC §§3550 (f) and 3551(c)]. Failure to provide the information can result in loss of employer medical control [LC §3550 (e)], civil penalties of up to $7,000 for each violation of the posting requirement [LC §6431], and toll the statute of limitations for filing a claim.

State regulations allow private enterprises to prepare and publish the posting notice or pamphlets if approved by the DWC, so for many years, insurers, employers and others have relied on CWCI to produce these materials and keep them current. Following the adoption of the regulations last week, CWCI submitted revised versions of its new hire pamphlet, “Facts About Workers’ Compensation,” and its posting notice, “If A Work Injury Occurs” for DWC review and approval. Once the approvals are given, CWCI will typeset, print and copyright the updated publications. To meet LC §3551(b) and CCR§9883(e), CWCI will also translate and print the revised pamphlets and posting notice in Spanish. In addition, the Institute will continue to produce the DWC-1/NOPE as a 5-part form, reformatted with the revised Notice of Potential Eligibility as a cover sheet.

Beyond these mandatory notices, the Institute is also updating its injured worker pamphlet, “Facts For Injured Workers” to reflect current TD rates and add MPN information. Although the 2002 reform bill (AB 749) eliminated the statutory requirement that claims administrators include a pamphlet explaining a worker’s benefits and obligations with the first notice of payment or notice of delay (LC §138.4), many companies continue to use “Facts For Injured Workers” as a way to provide claimants with basic information early in the life of the claim. The “Facts For Injured Workers” also can be used to meet the Insurance Code §1871.8 notice requirement on fraudulent receipt of temporary disability, and the LC §3553 notice requirement for victims of workplace crime. This pamphlet is available in English and Spanish as well.

Insurers, employers, TPAs, agents and brokers, and others who need to order the revised pamphlets and posting notices, as well as the revised DWC-1/Notice of Potential Eligibility may now do so by visiting the Institute’s online “Store” at http://www.cwci.org/ and placing a pre-order. Pending the DWC approvals, the Institute expects to have all of these materials ready for shipping by mid-September. In the meantime, the Institute will continue to stock the current notices and claim forms that should be used until October 7, and as a service to the community, has reduced the minimum order requirement so anyone needing a limited supply of the current materials to meet their interim needs can order them in smaller quantities. For further information regarding ordering, call Fran Perry at CWCI (510) 251-9470.

Information on these new notice requirements, as well as other recent regulatory changes, will be covered in an upcoming CWCI seminar, tentatively scheduled for mid-October. Specific dates and locations will be announced soon and posted in the seminar section of the Institute web site.

BY/

Copyright 2010, California Workers’ Compensation InstituteCWCI members may log in to http://www.cwci.org/ and access Bulletins in the Member area, while nonmembers with Research/Bulletin subscriptions may log in and access Bulletins under Resources (subscriber files). Public information is also posted on the website, and nonmembers may order annual subscriptions from the website store.

Thursday, August 19, 2010

In my email to you last week I asked if you were eligible for the tax credit provided under the new health bill. Many of you responded to me that you were not aware of the credit.

Basically if you have less than 25 employees with an average salary per employee of under $50000 you are eligible. The credit is a maximum of 35% of your premiums now and 50% 2014. I am providing a link below for you for more information.

Another provision in the health bill provides for a tax credit for non profits. The same basic rules apply per above but the credit is 25% now and in 2014 50%. It is not clear how you get this credit because of the nonprofit status but the regulations should be coming out shortly.

I am sure a lot of you volunteer in non profits so you would be doing them a service to advise them of this credit.

Small Business California has been asked by the California Endowment Foundation to obtain the views of California small businesses about the Health Reform legislation. Thank you to all of you that completed this. If you haven’t please take a couple of minutes to do so.

· WHAT DO SMALL BUSINESSES SEE AS THE ADVANTAGES OF HEALTH CARE REFORM FOR THEIR WORKFORCE AND DAY-TO-DAY OPERATIONS.

· WHAT DO SMALL BUSINESSES SEE AS PROBLEMS FOR HEALTH CARE REFORM ?

· WHAT ARE THE TOP THREE GOALS SMALL BUSINESSES WANT TO ACCOMPLISH WITH HEALTH CARE REFORM

Wednesday, August 11, 2010

Please see below press release indicating Small Business California's opposition to Proposition 23. We know this is controversial but given our strong support of AB 32 and our efforts to help small businesses reduce their energy use and cost through programs like On Bill Financing we felt it important to take this position.

We also feel there are tremendous opportunities for small business to drive research and development and small business job creation.

Small Business California Opposes Proposition 23

SACRAMENTO – Small Business California (SB-Cal) today announced its opposition to Proposition 23, the November ballot measure that would repeal California's clean energy and air pollution standards.

“Pulling the rug out from under businesses by dismantling the state’s roadmap to a clean energy future will not only hinder our economy, but will create an environment of uncertainty for small businesses who employ millions of Californians,” said Hank Ryan, Executive Director of Small Business California. “By repealing our clean energy standards, we would be putting thousands of jobs at risk and drive up costs for small businesses, while discouraging innovation and investments. California cannot afford Proposition 23.”

Small Business California is a proactive, non-partisan business advocacy organization whose only agenda is the well being of California small businesses. Working for all California small businesses for a better business environment, SB-Cal is responsive to the needs of California small business owners.

“Small businesses are the backbone of California’s economy. All innovation has left the shop of a small business and resulted in vast changes in the lives of millions,” said Steve Maviglio from the No on Proposition 23 campaign. “We are proud to have small business owners join our mission in exposing the deceptive Texas oil companies’ dirty energy proposition for what it truly is: an effort to unravel the state’s clean energy economy.”

Other business entities that officially oppose Proposition 23 are: Google, Bay Area Council, Levi Strauss & Co., the San Francisco and Greater San Fernando Valley Chambers of Commerce, LosAngeles Business Council, Virgin America, Silicon Valley Leadership Group, Warner Bros.Entertainment, Inc., and hundreds of small business owners.

Friday, August 06, 2010

This was sent to me by one of our members. I was not going to send it out to all of you but I thought you might be interested. These are the state agencies and Commissions. Make sure you scroll to the end. Thank you Richard.

Yesterday the Workers Compensation Insurance Rating Bureau chief actuary estimated a 30% workers compensation rate increase for January 1 2011. This will have to go to the Board of WCIRB.

The WCIRB recommendation is purely advisory and can be rejected or modified by the Insurance Commissioner Poizner. Last fall the bureau called for a 22.8 percent increase which Poizner rejected citing the poor economy and need for insurers to cut costs. WCIRB makes annual or semi-annual rate recommendations. This latest recommendation is consistent with their last proposed rate increase of 23.7 percent. The WCIRB cited escalating claims costs and recent court decisions as the basis for the need to increase rates.

The Senate Jobs bill will be coming back to the Senate in September. As you know by prior emails they are looking at adding an amendment to change the requirement of 1099s for all goods and service providers who receive over $600 from your business.

An amendment has been put forth by Senator Baucus to eliminate filing for businesses with less than 25 employees and for those over 25 increase the threshold from $600 to $5000. To make up the revenues they would charge a tax on the 5 largest oil companies.

It has not been reported how much this will raise but the health bill with 1099 requirement would raise $17 billion over 10 years.

The question is if this tax raises $17 billion or more why not repeal the requirement completely. Small Business California is looking into this.

Monday, August 02, 2010

I have received four emails that begin with the below information. I have deleted the other things this email pointed out because there are numerous errors and I do not have time to go line by line.

The assertion that people will have to pay taxes on their employer provided health insurance is wrong unless in 2018 it is deemed to be a Cadillac plan. Employers will however have to include health insurance in W2s beginning 2011 but again employees will not pay taxes.

Do not forward these kind of emails. I would also be interested to know if you have received this. From what I can tell these emails are being sent without a signature and getting forwarded by recipients.

2011 TAX HIKES Read it and weep! Notice they thought they could put it in after this November election: Past this on to likely voters. Small business are smart people, they are not hiring or expanding because they see lower or no profits, increased cost and a worsening economy.

In just six months, the largest tax hikes in the history of America will take effect. They will hit families and small businesses in three great waves on January 1, 2011:

Biggest surprise to working Americans:

Now your insurance is INCOME on your W2's...... One of the surprises we'll find come next year, is what follows - - a little "surprise" that 99% of us had no idea was included in the "new and improved" healthcare legislation

Starting in 2011, (next year folks), your W-2 tax form sent by your employer will be increased to show the value of whatever health insurance you are given by the company.

You will now be required to pay taxes on a large sum of money that you have never seen.

Take your tax form you just finished and see what $15,000 or $20,000 additional gross does to your Tax debt. That's what you'll pay next year. For many, it also puts you into a new higher bracket so it's even worse.

About Me

Small Business California is a proactive, non-partisan business advocate whose only agenda is the well being of California’s 3.2 million small businesses. Working for all small businesses for a better business environment, SB-Cal is responsive to the needs of small business owners.
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